MOST LIKELY, THE RUSSIAN "ITERA" COMPANY IS NOT GOING TO GIVE UP ITS PARTICIPATION IN THE TENDER FOR THE PRIVATIZATION OF DISTRIBUTIVE POWER NETWORKS OF ARMENIA

PanARMENIAN.Net - 26.07.2000, MEDIAMAX, YEREVAN. The special session the National Assembly of Armenia, discussing the bill about the privatization of the four distributive power networks of the country, is in process for the third day already. The deputies haven't began voting yet. Only the faction of the Republican party is definitely for the adoption of the bill.

"It is clear today that four companies will take part in the tender for the privatization of distributive power networks of Armenia - the American "AES Silk Road"; the Swiss "ABB"; the French "Electricite de France" and the Spanish "Union Fenosa", - about this informed the journalists the minister of energy of Armenia Karen Galustian on July 18.

But, to all appearances, the Russian "Itera" company, debarred from participating in the first tender, is not going to give up the struggle. The president of "ITERA-Holding" Valery Ochertsov declared in the interview to PRIME-TASS agency on July 24:" The parliament of Armenia took the decision to suspend the privatization by the prior plan. Together with RAO "Russian EES " and "Rosenergoatom" concern we addressed to the government of Armenia an proposal to form a joint enterprise with the participation of Armenian power engineering specialists, RAO "Russian EES " and "Rosenergoatom" and "ITERA", as the gas supplier to Armenia, in order to operate the power networks jointly. It is difficult to forecast the decision of the parliament of Armenia on this matter , and the share of "Itera" in the JSC, in case it is formed. We are not much worried about the rate of our participation in this project. The important is, that at the rate of electric power generated from the gas, the means should be directed to the purpose, and the work of realization of the projects of additional profit, should be carried out. I mean the projects of electric power export, from Armenia to Turkey directly or through the territory of Georgia".

The Armenian authorities have never informed of getting such a proposal from "Itera". In May 2000 the minister of Energy of Armenia David Zadoyan said that the Russian "Itera" company might form a consortium with one of the Western companies for repeated participation in the tender. As it became known to MEDIAMAX from informed sources, "Itera" tried to form a consortium with the Spanish company "Union Fenosa".

The West, the World Bank in particular, has repeatedly made Armenia understand that it favors the interests of the American "AES" company in the tender. The regional director of the World Bank Judy O'Connor, being in Yerevan in June for a visit, stated that Armenia will get the last part of the SAC-3 credit (the negotiations for the providing of which are being carried on for about a year) only after the privatization of the distributive power networks. According to her, the question of providing the SAC-4 credit in the amount of about 40 million dollars is also directly connected with the privatization of the power networks. --0--